Financial advantages of marriage in the UK

Financial advantages of marriage in the UK

I have recently received a few emails from people asking what benefits they can gain by legalizing a relationship in the UK. More and more often we can hear that someone is getting married not for love, like our grandparents, but just for financial benefits. Is it really worth thinking in this way by taking a wedding in England? Saving money is a priority for many of us. I decided that this is a very interesting topic and I want to present you 5 most important advantages of marriage in the UK.

Lower income tax

The British government has decided to reduce the income tax for marriages. This is one of the biggest benefits of marriage in the UK. Tax exemption for couples who have legalized their relationship has given them the opportunity to save money or allocate them to selected facilities or investments. You can save up to £ 220 a year. This works in such a way that a person earning more can transfer up to £ 1,100 of his or her income to a partner, who has lower income or is unemployed. You will find out more about this in the article: What is Marriage Allowance.

You know that in England you can get tax money back for washing work clothes at home.

You know that in England you can get tax money back for washing work clothes at home.

For example, if one partner pays a 40% tax and the other does not work, a part of the savings can be transferred to the unemployed, thereby reducing the income tax. However, the income of the person to whom we transfer part of our income may not exceed £ 11,000, and the income of the other spouse may not be higher than £ 43,000. This idea was widely criticized by higher-income couples who also wanted to participate in the government program. Indeed, in the UK you can benefit from it only by concluding a marriage or partnership.

See the most popular benefits in the UK: Carer’s Allowance, Housing benefit, Child Tax Credit, Income Support 

If we transfer some of our income to a partner with whom we live, we have no right to benefit from it. There is also the danger that the partner with whom we remain in an informal relationship may leave our money. It is also worth knowing that one of the conditions of reduction in income tax is also to be born after April 6, 1935.

Reduction of the amount of insurance of risk

Insurance is the overriding thing about which we should think in advance. Do you know how to save money on insurance of risk? By getting married, you can increase this amount by half! In the case of marriages, especially those with children, there is less risk of traffic accidents than in the case of singles.

Life choices and responsibility make that the spouses drive cautiously. The risk of accidents is also falling among those who have children and rarely leave the house after announcing the night time.

Capital gains tax

Capital gains tax (CGT) is another privilege that spouses can benefit from it. Profits from the sale of something that grows in value are taxed by it. You should remember that profit is taxed and not invested in money.

„Marriage consists of mutual interests and mutual lusts. The first one is growing with the years, the second one is disappearing. „John Galsworthy

Capital gains tax is 18% or 28%, depending on which tax category you belong to. As with the reduction of income tax, capital gains tax may be reduced by transferring a part of the income to a partner so that our hard earned money remains tax-free.

Pension

Another advantage of legalizing a relationship in the UK is the possibility of taking over the deceased spouse’s pension. This is possible only in the case of marriages. People, who are in unassociated relationships, have no right to inherit the partner’s pension. The inheritance of pension was intended to help a widow, who never worked to live worthily after the death of her husband. It was, however, at a time when the percentage of divorces was very low, and most of the partners decided to marry.

If you are interested in retirement in the UK then you must necessarily read the other posts on the topic of retirement in the UK.

But nowadays, the number of working women who earn on their own pension has increased. However, it is worth considering the legalization of the relationship to receive additional money. Similarly is in the case of partnerships that have almost the same rights in the UK as marriages. However, if you remain in an informal relationship, you will not receive the privileges of this title. It may not be particularly romantic to settle your relationship after years, but if we want to give your wife a decent life in the event of our death, we should decide to it.

How to save money through marriageInheritance tax

Ironically, the real saving of money begins only after the death of the spouse. In the UK, inheritance tax is payable when the value of the property exceeds £ 325,000. Fortunately, in the case of marriages, when the spouse inherits the entire amount, you do not have to pay the inheritance tax, even if it exceeds the above amount. The financial benefits of marriage in the UK are unquestionable. It is worth considering this option for saving, especially on taxes.

NOTE: I present private opinions and I am not responsible for the readers’ decisions. I always try to present current information but may no longer be up to date. Therefore, before making a decision, please verify them and consult a licensed financial adviser.

Radek_new

Hey! Nazywam się Radek i na codzień ciężko pracuję w Anglii i myśl, że na emeryturę będę mógł przejść dopiero po 68 latach nie jest mi na rękę. Dlatego udowodnię, że jest to możliwe w wieku 55 lat a może i wcześniej. Zobacz na tym blogu jak chcę to osiągnąć.

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